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Gift card distribution in Canada has transformed how rewards and incentives work for Canadian businesses. Whether you’re managing employee appreciation, customer loyalty, or incentive programs, digital gift cards make your life easier and your rewards better.

📌 At a glance:

• Simplify rewards: Use a digital gift card distributor to automate, bulk send, and track incentives

• 🇨🇦 Local favo(u)rites 😉: Access hundreds of Canadian brands like Tim Hortons, Air Canada, and Roots, plus global options and prepaid cards (i.e. Visa® and Mastercard®).

• Flexible delivery: Send rewards instantly via email, SMS, Slack, QR code, or integrate with your software.

 

In this article, we’ll explore gift card distribution in Canada, sharing how you and your team can leverage the best digital solutions, what brands are available, how to handle taxes, and actionable strategies to make your rewards program stand out.

We’ll also cover common questions, specific instructions for sending popular cards, and tips for supporting fellow Canadian businesses.

Pro-tip: If you decide to work with a gift card company, make sure you find one that lets you pay in CAD and send in CAD. 

In other words, avoid companies that will make you pay in USD, send in USD, or both. 

This is key to streamlining your finances (and making your life a whole lot easier!).

How to use gift cards for rewards and incentives in Canada

You've got a couple options if you want to use gift cards in your incentive programs. 

You can send someone to the grocery store to buy a stack of physical cards, keep them in a desk drawer, and send them out as needed. Just watch their expiry dates,  or you could end up with a stack of unusable cards like Canadian manufacturers Factors Group did.

You also won't be able to lock down any revenue sharing or bulk discounts. 

Plus, we know from decades of research that digital rewards simply perform better. For example, we know that 4 out of 5 people prefer digital gift cards to physical ones. 

Like Giftbit CCO Nat Salvione says, “digital gift cards get results.” That’s why a streamlined, digital-first approach is the gold standard for Canadian organizations aiming to motivate and delight their audiences.

So if you want to go digital, you might opt to work with one of the 'big guy' gift card distributors, although don't be surprised if their catalog is focused on American audiences, or if you're able to get any hands-on support you might end up needing. 

Instead, the smartest way to manage gift card rewards and incentives in Canada is to work with an online Canadian gift card distributor that offers a comprehensive catalog of Canadian and international brands.

Instead of tracking down individual cards (and handling the headache of sending them one by one), tap into their gift card platform and let it do the heavy lifting.

Choose the right one, and you'll also enjoy hands-on support for your and your recipients, no matter how small your program is. 

Cirlce head shot NatThere's a lot of cool things about Giftbit. Personally, I love that it all started on Vancouver Island. 

If you ever want to come visit our Victoria office, you're in for a treat, because it's pretty much one of the most beautiful cities on earth. 
— Nat Salvione, CCO  |  Giftbit

 

Popular gift cards in Canada

Thanks to our history, Giftbit understands servicing Canada inside and out. Hundreds of Canadian gift cards are available in the rewards catalog, covering everything from national chains to iconic local brands.

cell phone screen with canadian gift card options displayed


If you want, your Canadian recipients can also have access to global favorites like Amazon gift cards.

Ultimately, it's your choice whether you'll want to offer a curated list of Canadian-centric brands, or give your audience full access to the whole catalog. 

Plus, there are tons of international eGift cards available too. That means if you have recipients outside of Canada too, you're still covered. 💪

Meanwhile, some of the most popular gift cards in Canada include:

  • Air Canada
  • Best Buy
  • Boston Pizza
  • DavidsTea
  • Earls
  • East Side Mario's
  • Elephant & Castle
  • Esso and Mobil
  • Foodland
  • FreshCo
  • Harvey's
  • Home Hardware
  • Indigo
  • Kelsey's
  • Kent
  • la Vie en Rose
  • Laytons
  • lululemon
  • LUSH
  • Marshalls
  • Montana's BBQ & Bar
  • Mountain Equipment Company
  • Original Joe's
  • Petro-Canada
  • Pizza Pizza
  • Rachelle Béry
  • Reitmans
  • Rexall
  • Roots
  • RW & Co
  • Sobeys
  • Swiss Chalet
  • The Loose Moose
  • Thrifty Foods
  • Tim Hortons

Global reward catalog.

Prepaid cards in Canada, too

Not all rewards are created equal—especially when it comes to gift cards versus prepaid cards.

In industry speak, gift cards are typically restricted to one merchant or a group of named retailers. Think: a $25 Starbucks card for coffee lovers (also available in the catalog!).

But options like Visa and Mastercard are called 'prepaid cards.' They function more like general-purpose cards and can be spent almost anywhere those networks are accepted—including online and at international locations.

Choosing between these formats can be confusing, but the best gift card distribution platforms in Canada remove the stress.

Just send access to a full rewards catalog—recipients can select a store gift card, or a prepaid Visa or Mastercard card, or even both.

In other words, we take care of the 'gift card vs prepaid card' distinction, so you don't have to. 

This flexibility makes it simple for your team and maximizes satisfaction for your recipients.

 

Good to know: The Giftbit platform lets you send Visa and Mastercard prepaid cards in CAD. 🇨🇦

Canadian gift card FAQs

Is there French language support?

Yes, French language support is provided by the Canadian retailers in the Giftbit catalog. 

Are gift cards taxable income in Canada?

In most cases, at the time of writing this article, gift cards given by employers to employees in Canada are considered taxable benefits and should be reported on employees’ T4 slips, since they’re treated as cash equivalents.

If certain conditions are met, though, a closed-loop gift card (usable only at a single retailer or specified group and not convertible to cash) may qualify as a non-cash gift up to $500 per year per employee.

Always keep detailed records and check the latest rules with the Canada Revenue Agency or your tax professional, as these regulations can change.

Learn more about the Government of Canada's rules for gifts, awards, and long-service awards here

 

Can you send a gift card via email in Canada?

If you work with the right Canadian gift card company, you'll be able to send cards instantly by email, along with other methods. You can also deliver rewards and incentives via SMS, Slack, direct links, QR codes, or even integrate distribution into your own software or app.

This flexibility ensures your recipients get their rewards fast, wherever they are, and however they want to receive them.

How to deliver gift cards in Canadian incentive programs

Like we've covered, working with a digital gift card distributor lets you skip the stacks of plastic, trips to the store, and hours spent recording what’s gone where.

Everything’s centralized: buy cards in bulk, automate deliveries, monitor redemption, and access real-time reports. All this lets you and your team stay focused on big-picture goals instead of logistics.

Setting up your reward program typically involves uploading a list of recipients, selecting the types of gift cards and the denominations you want, and scheduling instant or future deliveries. 

Ideally, you'll also want to ensure that you're only ever paying for the gift cards you actually send. In other words, if you send someone a $10 Tim Hortons gift card, it should only cost you $10 (or less, depending on whether you have any revenue sharing—book a call with our Incentive Specialist Matt Brossard to learn more).

How to send Amazon gift cards to Canadian recipients

Sending an Amazon gift card is simple with a digital distributor—just select Amazon.ca from the catalog, set the desired amount, upload your recipient list, and schedule delivery.

The recipient will receive a digital code redeemable directly on Amazon.ca.

How to send Apple gift cards to Canadian residents

You can send Apple gift cards (for use on the Canadian Apple Store, the App Store, or iTunes) by choosing the Apple option from your distributor’s catalog.

Recipients receive a digital card they can redeem online or via their Apple device, ensuring quick, easy access to content and products.

How to send Tim Hortons gift cards to Canadian residents

For a classic Canadian touch, Tim Hortons gift cards are always in high demand.

To use them in your incentive programs, just select Tim Hortons as your reward, choose your amount, and send it instantly.

Recipients can redeem in-store or through the Tim Hortons app, making it easy to enjoy their beloved coffee and treats.

How to support local Canadian businesses with your rewards program

If you want your incentive program to support local Canadian merchants, know that many small, ultra-local companies simply don’t have the capacity to offer digital gift cards through distribution platforms.

However, you can still create a curated list of available Canadian brands that align with your mission and values.

You might also choose to leverage prepaid cards like Visa and Mastercard to give your recipients the option to spend at their favorite local businesses.

Giftbit pricing.


Key considerations for reward distribution in Canada

Category Key points Why it matters
Distribution method Use a digital distributor for bulk sending, automation, and reporting Saves administrative time and offers scalable and instant delivery
Popular brands Amazon, Tim Hortons, Air Canada, Indigo, lululemon, and more Wide Canadian choices boost engagement and recipient satisfaction
Gift cards vs prepaid cards Gift cards are merchant-specific; prepaid are general purpose (i.e., Visa/Mastercard) Flexibility lets recipients choose what fits them best
Delivery options Email, SMS, Slack, QR code, integration with existing software, full automation via gift card API  Meet your recipients where they are, for higher redemption
Tax considerations Usually taxable, but check CRA for details and keep good records Stay compliant and avoid tax surprises
Supporting local Offer Canadian brands or prepaid cards to encourage local spending Aligns with values, boosts local economy, and builds goodwill
Program impact Digital gift cards are preferred by 4 out of 5 people Greater recipient satisfaction and program ROI

 

Why use Canadian brands in your rewards programs?

When your recipients are Canadian, using homegrown brands delivers a more relevant, personal experience. It helps your program feel local, supports the Canadian economy, and strengthens goodwill by showing your commitment to local culture and values.

Ultimately, by choosing Canadian brands, you'll be building connections that matter.

Giftbit is a Canadian gift card distributor with an extensive selection of Canadian rewards. Book some time to learn more. 

Send digital rewards to Canadian recipients

Check out the Giftbit Overview to learn how, or create a free account to see how easy it really is.

Create account

1
Create an account

No cost to access, no minimums or special subscriptions.

2
Upload contacts
Upload from a csv. file and include the employee's name and email.
3
Send 🇨🇦

Choose what Canadian gift cards you want, then send or schedule delivery to Canadian recipients.

Matt Brossard
Post by Matt Brossard
June 11, 2025
Giftbit Director of Business Development